rootsreality
03-20-2009, 02:50 PM
I hope to add a new report to my repetoire and am looking for feedback, ideas or similar samples.
Pour cost is helpful to me, but it doesn't make much sense to my staff. I want something that I can share with them to give them visibility to how well (or not) they are doing.
I have played around with this a bit and but it needs finetuning. For the past couple of months I have compared actual sales to usage. We don't have a POS system so it is a manual process. I group our various cash register departments to match our pricing tiers. I group our inventory the same way.
After we do a physical inventory (by bottles to 1/10 fractions) I calculate the amount of liquor used per group. My spreadsheet converts the liquor used to a count of shots, depending on bottle size. I then multiply the number of shots used by the base price for that group to get a "Potential Sales" number. I compare that to the actual sales for the group less the sum of the reported comps and waste, showing values of the comps/waste as if they were sold. (Someone previously implied that giveaways should be shown as a 'marketing' cost. That was an interesting thought too.) Right now I refer to the result as "Lost Sales" although I am not real happy with that terminology.
This report is certainly not 100% accurate as promotions, happy hour pricing and drinks that use multiple liquors can skew the results but it does make the staff very aware that everything is being tracked. They get a rough idea of how much more we could have made if there was no overpouring, or forgetting to note comps and waste drinks.
I am thinking that I should also convert the final number to a percentage and declare a target value or an allowable deviation. It seems to me that the percentage should be based on the inventory used rather than the actual sales but I want a couple of more month of tracking this to get a better feel for the trends.
Does anyone do this type of reporting now? If so, please share your report format or thoughts on how I am going about this. What level of deviation should I consider as reasonable?
(PS - I got the idea for this from some sample reports I saw from Bevinco but they no longer post their samples on their website. I think they called the lost sales 'shrinkage' which makes sense but has a negative connotation. I am pleased with my current staff and don't want to imply that they are stealing. I just want them to know that I am keeping a close eye on things and that there is almost always room for improvement.)
Pour cost is helpful to me, but it doesn't make much sense to my staff. I want something that I can share with them to give them visibility to how well (or not) they are doing.
I have played around with this a bit and but it needs finetuning. For the past couple of months I have compared actual sales to usage. We don't have a POS system so it is a manual process. I group our various cash register departments to match our pricing tiers. I group our inventory the same way.
After we do a physical inventory (by bottles to 1/10 fractions) I calculate the amount of liquor used per group. My spreadsheet converts the liquor used to a count of shots, depending on bottle size. I then multiply the number of shots used by the base price for that group to get a "Potential Sales" number. I compare that to the actual sales for the group less the sum of the reported comps and waste, showing values of the comps/waste as if they were sold. (Someone previously implied that giveaways should be shown as a 'marketing' cost. That was an interesting thought too.) Right now I refer to the result as "Lost Sales" although I am not real happy with that terminology.
This report is certainly not 100% accurate as promotions, happy hour pricing and drinks that use multiple liquors can skew the results but it does make the staff very aware that everything is being tracked. They get a rough idea of how much more we could have made if there was no overpouring, or forgetting to note comps and waste drinks.
I am thinking that I should also convert the final number to a percentage and declare a target value or an allowable deviation. It seems to me that the percentage should be based on the inventory used rather than the actual sales but I want a couple of more month of tracking this to get a better feel for the trends.
Does anyone do this type of reporting now? If so, please share your report format or thoughts on how I am going about this. What level of deviation should I consider as reasonable?
(PS - I got the idea for this from some sample reports I saw from Bevinco but they no longer post their samples on their website. I think they called the lost sales 'shrinkage' which makes sense but has a negative connotation. I am pleased with my current staff and don't want to imply that they are stealing. I just want them to know that I am keeping a close eye on things and that there is almost always room for improvement.)